Bitcoin, the world’s largest cryptocurrency by market value, was last down 7.25% on the day at $87,169.76.

Global investors have been jittery on signs the so-called exceptionalism of the U.S. economy might be fading, while President Donald Trump prepares to impose tariffs.

Trump indicated on Monday he still plans to slap a 25 per cent levy on imports from Canada and Mexico from early March and, in a sign of unease, safe-haven US Treasury prices have rallied sharply, sending yields to two-month lows.

“The macroeconomic situation has been the main reason for the price decline in the last few hours,” said Marcel Heinrichsmeier, crypto assets analyst at DZ Bank.

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“The Bybit hack and the memecoin turmoil of the past few weeks have contributed to a generally worse mood in the crypto market than at the beginning of the year.”

While bitcoin has lost nearly 8 per cent in the last week, smaller altcoins have been hit even harder.

Memecoin dogecoin and the tokens for the solana and cardano networks have all dropped around 20 per cent, according to CoinGecko.

“The brutal sell-off happening in crypto is not unexpected considering we’ve just seen the biggest hack in our history,” said Charles Wayn, co-founder of Galxe, a decentralized blockchain-based platform.

“This has been compounded by further fears over global tariffs.”

Delayed reaction

Dubai-headquartered Bybit, the world’s second-largest exchange behind Binance, said last week hackers had stolen digital tokens worth around $1.5 billion.

Blockchain research firm Elliptic said the hack was “almost certainly the single largest known theft of any kind in all time.”

Ether, the second-largest cryptocurrency by market value, was down 8.46% at $2,414.29, around its lowest since October.

Joseph Edwards, head of research at Enigma Securities, said Tuesday’s selloff seemed to be “a bit of a delayed reaction from the Bybit hack.”

“Markets held up peculiarly well in response to what was expected to be a significant destabilising event … but there tends to be a price to be paid further down the line…”

“We’ve seen the classic thing, where a slight contraction in risk has caused a small cascading selloff within crypto markets specifically.”

Part of the reason for the shift in sentiment is that policy changes in the US have not lived up to expectations.